Published

Microreview of Financial Engines

Founded in 1996, Financial Engines is a retirement plan advisory service for employees of participating employer retirement plans (which many online advisors work outside of).

They provide management services and advice so that either they can manage your plan, or you can do it yourself but armed with their information and input.

The service is made available through your employer plan, which is to say that it’s offered as an additional benefit — or in this case, a benefit within a benefit.

A very few employers make the service available to their staffs free of charge, but the range is between 0.20% and 0.60% of the value of your retirement portfolio, with the average being “just below 0.40%”. Based on the average, the cost on a $100,000 401(k) plan would be just below $400 per year. This is the fee you will pay to Financial Engines while using their service. It does not include administrative fees paid to your account administrator, or transactions costs to trade and maintain securities and funds. As far as account minimums, there are none.